Crypto firms have been eagerly awaiting a series of U.S. government reports they hoped would clarify what the Biden administration and regulators intend to do about digital assets. Most of the documents are out now, but the picture remains murky.
The reports from the Treasury Department – three of them released Friday – largely recommend the government continue assessing crypto risks, keep up enforcement actions and push forward with work on a digital dollar (without recommending the U.S. should have one).
"The reports clearly identify the real challenges and risks from digital assets used for financial services," Treasury Secretary Janet Yellen told reporters in a briefing. "If these risks are mitigated, digital assets and other emerging technologies could offer significant opportunities."
The reports are a response to President Joe Biden’s executive order on digital assets, signed in March, which directed federal agencies to analyze different aspects and issues around the cryptocurrency ecosystem and provide recommendations for how the U.S. can both be a leader in the digital asset sector worldwide, as well as address any monetary stability or consumer protection risks posed by the burgeoning industry. Agencies will publish a total of 21 reports.
Previous reports – one from the Treasury Department, one from the Justice Department and one from the White House Office of Science and Technology Policy – were published over the past few months. Treasury published three more reports on Friday, and the White House issued what it described as its “first-ever framework for responsible development of digital assets.”
In a statement, National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan said the different reports lay out concerns around consumer protections and illicit activities, and suggest how the administration can address these issues.
“Together, we are laying the groundwork for a thoughtful, comprehensive approach to mitigating digital assets’ acute risks and—where proven—harnessing their benefits. We remain committed to working with allies, partners, and the broader digital asset community to shape the future of this ecosystem,” the statement said.
After six months of study, the federal agencies made it clear that they're devoting a lot of attention to crypto, but they aren’t ready to declare a definite course of action. Still unanswered is the single biggest U.S. question in crypto: What makes a token a security, and which ones should be regulated as commodities?